Annual Performance Report FY16 FINAL for Board
-
Upload
rj-mcgrail -
Category
Documents
-
view
59 -
download
0
Transcript of Annual Performance Report FY16 FINAL for Board
Annual Performance Report — Fiscal Year 2016
Charlie Baker, Governor
Karyn Polito, Lt. Governor
Jay Ash, Chairman and Secretary, Executive Office of Housing and Economic Development
Marty Jones, President & CEO
2
JOBS CREATED 155% of Target for Fiscal Year
PROJECTS IN FISCAL 2016
[TDI] District in Development & ULI TAP—Shirley Ave., Revere
Provided intenstive one day planning w regional
experts to inform a comprehensive, community
led redevelopment strategy in a key neighbor-
hood commercial corridor.
Cultural Facilities
Fund - Truro Center
for the Arts @ Castle
Hill, $600,000
Contribution to a $1.6
million dollar capital campaign to fund acqui-
sition of the historic Edgewood Farm.
Acquisition of the 7 acre site will provide ex-
panded summer housing, broaden program-
ming and community partnerships, and con-
tribute to greenspace preservation in the
community.
Real Estate Loan - Lexvest Chapel LLC, Pepperell, $2.25M
Redevelopment of the property will provide upgrades to
60,000 sq. ft of space for multiple new tenants in office,
light manufacturing & warehouse storage.
Project will create 100 new jobs.
AT A GLANCE
HOUSING UNITS
PRESERVED
&/OR BUILT
501c3 Bond & New Market Tax Credit - Holyoke
Medical Center, $25M
Financing combined a
$10 million New Mar-
kets Tax Credit and
$15 million tax-
exempt bond.
The acute-care community hospital will build a two-
story addition that will house a new emergency de-
partment, a weight clinic, sleep-care center, and spe-
cialty outpatient services, expanding service for over
15,000 patients.
Project will create 25 jobs and 70 construction jobs. 167% of Target for Fiscal Year
Manufacturing Bond -
Advanced Cable Ties,
Inc., Gardner, $8M
Financing will build
42,300 sq. ft of new,
manufacturing & warehouse space & fund equip-
ment upgrades.
Project will create 130 new & construction jobs.
3
STRATEGIC THEMES & FISCAL YEAR 2016 GOALS
SUPPORT ECONOMIC GROWTH
STRIVE FOR ORGANIZATIONAL EXCELLENCE
BUILD REGIONAL COMPETITIVENESS
FULLY MET GOAL PARTIALLY MET GOAL
Provide Access to Markets
Support Job Creation
Increase Access to the Innovation Economy
Champion Transformative Development Initiative
Increase Housing Availability
Build Regional Knowledge & Facilitate Regionally Based Econom-
ic Growth
Develop Devens
Catalyze Urban Economic Growth, Cultivate Small Businesses &
Improve Brownfields Program
Modernize Systems & Technology
Build Collaborative Culture
Strengthen Performance Management
Support Defense Sector, Military Installations & Related
Industries
Support Manufacturing & Other Commercial/Industrial
Sectors
Build MassDevelopment Workforce Capacity
Increase Stakeholder Engagement
STRATEGIC THEMES
Strategic Theme 1: Support Economic Growth Foster and Cultivate Opportunities That Equip Businesses, Nonprofits and Communities with the Tools They Need to Sustain and or Expand, Creating Quality Jobs to Meet the
Needs of the Commonwealth's Economy
Strategic Theme 2: Build Regional Competitiveness Increase Housing Stock and Make Investments In Targeted
Communities, Add to their Housing Options and Commercial Property Stock, Remediate Troubled Sites and Apply Effec-
tive Redevelopment Practices.
Strategic Theme 3: Build Organizational Excellence Create a High-Performing Organization with Efficient, Effec-tive and Integrated Delivery of Services to External and In-
ternal Customers and a Diverse, Highly-Qualified Workforce with the Right Skills in the Right Jobs.
DECISION RULES
Quantitative & qualitative metrics established for each goal.
FULLY MET GOAL—All quantitative targets met
more than 2/3 of qualitative measures met
PARTIALLY MET GOAL— Some quantitative targets me
less than 2/3 of qualitative measures met
4
KEY PERFORMANCE INDICATORS
SUPPORTING ECONOMIC GROWTH:
JOB CREATION
FY14-FY16 Comparison—Total Jobs Created
SUPPORTING ECONOMIC GROWTH:
ACCESS TO CAPITAL
BUILDING REGIONAL COMPETITIVENESS:
INCREASE HOUSING AVAILABILITY
FY14-FY16 Comparison—Total Financing FY14-FY16 Comparison— Total Units
5
SUPPORT ECONOMIC GROWTH: SUPPORT ACCESS TO CAPITAL
Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016
Total $ Invested
(Bonds, Loans & Grants)
$2,333,253,346 $2,867,710,604 $2,410,425,751 $3,960,006,084
Total Projects/Closings 317 277 286 296
MassDevelopment Investment Trends FY2007 - FY2016
FY2016 Total Invested (by region)
Performance Analysis
122% of fiscal year target in total financing volume
Increase over prior year and high share of total volume in Greater Boston driven by two
large hospital issuances ($500M, Partners and $500M, CareGroup)
Over $1B in support for projects outside of Greater Boston
97% of fiscal year target in general & restricted fund lending
118% of fiscal year target in community development (Brownfields, CFF, Manufacturing grants)
0
50
100
150
200
250
300
350
FY2008 FY2009 FY2010 FY2011 FY 2012 FY2013 FY2014 FY2015 FY2016
# of Deals
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
$4,000,000,000
$4,500,000,000
FY2007 FY2008 FY2009 FY2010 FY2012 FY2013 FY2014 FY2014 FY2016
Total Invested
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
FY2007 FY2008 FY2009 FY2010 FY2012 FY2013 FY2014 FY2015 FY2016
Existing Jobs (At Customers Financed)
6
Performance Analysis
155% of fiscal year target in total job creation
* Significant new employment (projected & calculated construction) in FY16 transactions
137% increase in projected new permanent jobs created over FY14
211% increase in calculated construction jobs created over FY14
* Significant 501 c 3 bond issuances financing new construction in FY16
18% increase in existing jobs indirectly supported by providing businesses and institutions in
the Commonwealth access to financing
SUPPORT ECONOMIC GROWTH: SUPPORT JOB CREATION
FY2015 & FY2016
New Permanent/Construction Jobs (by region)
Jobs Created
FY2007—FY2015
531778%
3044%
2864%
2394%
69510%
Construction Jobs - FY15
Greater Boston
Northeast
Central
Southeast
West
4389, 73%
176, 3%
430, 7%
230, 4%
784, 13%New Permanent Jobs - FY15
Greater Boston
Northeast
Central
Southeast
West
6,814, 83%
502, 6%
492, 6%
142, 2%259, 3%
New Permanent Jobs - FY16
Greater Boston
Northeast
Central
Southeast
West
10,406, 72%
1,541, 11%
1,485, 10%
309, 2%676, 5%
Construction Jobs - FY16
Greater Boston
Northeast
Central
Southeast
West
11,016 10,3848,232
3,580
11,7689,169
15,32412,933
22,626
0
5,000
10,000
15,000
20,000
25,000
FY2007 FY2008 FY2009 FY2010 FY2012 FY2013 FY2014 FY2015 FY2016
Jobs Created (Construction + New Permanent)
Total: 6,009 Total: 8,209 Total: 6,841 Total: 14,417
7
Performance Analysis
37% decrease in total dollars invested (all pro-
grams) to support the manufacturing sector
over previous year
38% decrease in total job creation (projected
new and construction) supported in the manu-
facturing sector over previous year
17% increase in total projects supported in the
manufacturing sector over previous year
Program Awards
9 Grants - $ Invested: $88,633
Program Highlights
Over 100 events, conferences, company tours,
teacher externships and student internships sup-
ported
Over 120 employers participating in activities in-
cluding tours, job fairs, hosting internships/
externships
Significant exposure to opportunities in the sec-
tor reaching
Over 2,500 students
Over 800 parents
Over 100 teachers and guidance counselors
SUPPORT ECONOMIC GROWTH:
STRENGTHEN THE MANUFACTURING SECTOR
0
10
20
30
40
50
2012 2013 2014 2015 2016
Manufacturing Projects/Investments
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2012 2013 2014 2015 2016
$ Invested
0
200
400
600
800
1000
2012 2013 2014 2015 2016
Jobs Created
Manufacturing 2012—2016 (Total Projects, Total Invested, Total Jobs Created)
Finicky Pet Foods, Inc., New Bedford
Manufacturing Bond & Loan Guarantee
($5.9M) —
Manufacturing bond financing, which
MassDevelopment enhanced with two ex-
port guarantees, will be used to acquire and install solar panels on the
roof of Finicky’s New Bedford manufacturing facility.
Finicky Pet Food, Inc. sources fresh fish, frozen fish, and fish scrap from
local fish cutting-houses for processing. The company provides frozen
and ground fish to suppliers and manufacturers in all parts of the indus-
try’s supply chain.
MassDevelopment estimates the project will create 20 construction jobs
and increase the company’s energy efficiency.
8
SUPPORT ECONOMIC GROWTH: STRENGTHEN THE DEFENSE SECTOR
Performance Highlights
Updated UMass Donohue data (as of FY2013) reports on impact of 6
installations on the economy & on value of contracts to the state:
Massachusetts military installations directly or indirectly supported
More than 57,000 jobs
Total economic contribution of more than $13 billion
Defense contracts in Massachusetts directly or indirectly supported
More than 88,000 workers
Total economic contribution of more than $20 billion
Implemented multiple clean energy/energy efficiency projects at installations in partnership with Dept. of Energy Resources
$2.3M total invested in multiple projects at installations Total Annual Projected kWh Savings from projects
Consultant in place to determine savings after projects are operational
Barnes
AFB
Ft. Devens Hanscom
AFB
Westover
AFB
Natick Joint Base
Cape Cod
In FY2016, the agency collaborated with the Commonwealth and The MITRE Corporation to complete program design and prepare to launch the Massachusetts Innovation Bridge. The Innovation Bridge will help federal agen-cies solve the nation’s most difficult challenges by tapping into the world-leading innovation and high-tech eco-system in Massachusetts, while creating new business opportunities in the Commonwealth.
Through the Innovation Bridge, the Department of Defense and other federal agencies will create new relation-
ships with innovative academic institutions, thought leaders, established companies, and with companies that
previously did not work with the federal government. Together, they will discover innovative ideas, products,
and services to enhance federal agency missions. The new collaborative workspace will also give Massachusetts
companies, higher education institutions, and nonprofits access to new federal business opportunities.
Program Highlight—Doriot Chamber Upgrades (Natick Soldier
Systems Center)
MassDevelopment provided $900,000 in funding to support in-
stallation of new mechanical and electrical systems. This support
will reduce the chambers' annual operating costs by more than
$71,000 and energy use by 85 percent.
The project is designed to increase the opportunity to foster
cross-sector, collaborative research partnerships that will ad-
vance science and technology innovation.
The Doriot Climatic Chambers is a unique testing facility capable of producing extreme environmental condi-
tions for the Army's equipment and human-performance-related research and technology development. The
facility consists of two large, main chambers that simulate tropical and arctic environments by replicating the
temperature, humidity, wind, rainfall and solar radiation conditions found anywhere in the world.
9
SUPPORT ECONOMIC GROWTH: INCREASE ACCESS TO THE INNOVATION ECONOMY
Emerging Technology Fund (FY2014—FY2016)
Total Invested
$10,525,000
Total New Jobs
250
Total Existing Jobs
100
CoWork Program (Gateway City/TDI)
FY16 - 13 Grants, $ Invested: $462,000
Program To Date - 24 Grants, $ Invested: $1,449,800
Program Highlights
19 CoWork funded spaces, totaling over 140,000 square feet
Significant program efforts in FY16 including:
Over 150 participating members
Over 200 events/classes/meetings sponsored by spaces
5 New Business Starts
10
BUILD REGIONAL COMPETITIVENESS:
IMPLEMENT TRANSFORMATIVE DEVELOPMENT INITIATIVE
Performance Analysis
TDI Equity
One investment closed in FY 16 (Stearns Sq., Spring-
field) $2.4M total cost; several tenant prospects identi-
fied
10-15 pipeline projects in districts of various types un-
der consideration/due diligence throughout year
TDI Fellows
3 new fellows placed (Pittsfield, Brockton, New Bed-
ford) joining Lynn, Haverhill & Springfield
2 adjunct fellows identified in Worcester & Peabody
TDI Technical Assistance
17 technical assistance engagements completed in
FY16, including:
Market Studies, Building Test Fits, Comprehen-
sive Downtown Planning, Community Engage-
ment
TDI Fund Leverage
$3.7M in outside support leveraged, including:
National Resource Network partnership
City of Springfield Stearns Sq. Park improve-
ment commitments
TDI Program Highlight
Make-It Springfield
Initially a street activation
pop up experiment be-
tween UMass and MassDe-
velopment, the space has
hosted 30 different resi-
dents, artists, entrepre-
neurs, local nonprofits, ac-
ademic faculty and stu-
dents, serving 150 people
per week.
Thanks to the success of the space’s public workshops and the contin-
ued support of Silverbrick Lofts, the building’s owner, Make-It Spring-
field will be in its current location at 168 Worthington Street for the
foreseeable future, adding to the vitality of downtown Springfield and
its TDI District.
UMass and MassDevelopment are funding the effort with help from
landlord SilverBrick Lofts.
11
BUILD REGIONAL COMPETITIVENESS: INCREASE HOUSING AVAILABILITY
Performance Analysis
167% of fiscal year target in total units built/preserved
63% increase in units preserved over previous year, 154% increase in units built over
previous year
*For the next 2-5 years, the FY 14-16 trend likely to continue (pending allocation of
bond cap) with increasing new construction demand (both affordable & market) and sig-
nificant preservation demand
42% of all units supported (avg., last 5 FYs) are in highest housing cost MassDevelop-
ment region (Greater Boston)
Over 65% of these units are at some level of affordability (FY2016)
12
BUILD REGIONAL COMPETITIVENESS:
BUILD REGIONAL ECONOMIC DEVELOPMENT KNOWLEDGE
Performance Analysis
Significant utilization rate for TAConnect workshops
Decrease in total number of RE Technical Assistance projects initiated & completed over prior FY
Technical Assistance Panels 2016
Leominster - Downtown
Redevelopment
Taunton - Downtown
Redevelopment
Revere - Shirley Ave. Corridor
Provincetown - Affordable/
Workforce Housing
FY2016 Results
Workshops/Webinars/Peer Groups - 11
Including 64 cities/towns, 7 Regional Planning Agen-
cies & 8 state/regional agencies
Topics included: Mill Redevelopment; Financing
Downtown Revitalization; Creative Economy; Place-
making
6 municipalities completed online applications for
assistance using the TAConnect portal
Real Estate Services - Technical Assistance
New Projects Completed Projects
FY2014 11 4
FY2015 12 6
FY2016 7 4
Plan Development Activity To Date
Comprehensive planning effort completed summer, 2015. Results to date
include:
Construction of new town marina operations center & opening of new
retail outlets including fish market/restaurant completed summer, 2016.
Town officials & stakeholders continue to work towards other planned
activities in the years ahead.
SANDWICH, MA—MARINA PLAN
13
BUILD REGIONAL COMPETITIVENESS: CATALYZE URBAN ECONOMIC GROWTH, CULTIVATE SMALL BUSINESSES
& IMPROVE BROWNFIELDS PROGRAM
Performance Analysis
90% increase in total dollars to Gateway Cities over previous fiscal year
42% Increase in total job creation (projected new permanent & construction) over previous fiscal year
33% of total MassDevelopment projects in FY16 in Gateway Cities
Small Business Ecosystem Study—Springfield, Haverhill, New Bedford
(MassDevelopment & NextStreet)
14
BUILD REGIONAL COMPETITIVENESS: BUILD DEVENS
FY16—Development at a Glance
Acres Sold for New Development: 22.5 (Additional options on 12 acres)
Acres/SF New Development Constructed: 22.5 acres/190,000 SF
Sites Marketed: 18 sites (including 9 former Army buildings)
Sold: 3
Total $ Invested:
Public: $4,342,459
Performance Analysis
28% decrease in Devens operations deficit over previous year
8% increase in total assessed value of land over previous year
9% increase in total tax revenue over previous year
10:1 ratio of private investment to public investment in
Devens projects
24% increase in total employment (4,977) at Devens
30% higher average wage ($83,545) at Devens than in MA
($60,094)
2/3 to target of recovering all jobs lost in base closure
Note: Valuation as of 1/1. Does not include properties assessed a Municipal Service Fee. Does not include full value of parcels under TIFs or STAs.
Devens Total Assessed Valuation
2015 to 2016
FY2015 Valuation FY2016 Valuation Change % Change
Residential $31,025,600 $31,588,100 $562,500 1.81%
Commercial $40,519,500 $42,398,100 $1,878,600 4.64%
Industrial $103,244,100 $125,153,500 $21,909,400 21.22%
Total 174,789,200 $199,139,700 $24,350,500 13.9%
$4,981,962 $5,050,415 $5,703,047
$6,264,465
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
FY2013 FY2014 FY2015 FY 2016
Devens Total Tax Revenue (excluding PILOT fees)**
FY 2013, 2014, 2015 and FY 2016
$2,529,921 $2,840,279
$1,468,338
$1,062,666
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
FY2013 FY2014 FY2015 FY 2016
Devens - Operations Deficit*Fiscal Years 2013, 2014, 2015 and 2016
Note: *Only includes Devens Municipal Operations **Does not include property values subject to a TIF. All values above are unaudited.
15
STRIVE FOR ORGANIZATIONAL EXCELLENCE: ALL GOALS
Build MassDevelopment Workforce
Capacity
Goal incomplete.
Due to human resource department staffing transition. Plan in place for FY17 full implementation.
Modernize Systems & Technology Goal complete.
Significant improvements to user experience/reporting for Bi360.
Build Collaborative Culture
Goal complete.
Agency increased involvement in cross-sector policy functions, including co-chairing Federal Reserve Bank of Boston Downtown Redevelopment Working
Group & participation in Small Business Growth Working Group. Plan in place to explore additional opportunities in FY17.
Increase Stakeholder Engagement Goal partially complete.
Increased use of technology to disseminate information, including but not limited to video of board presentations.
Strengthen Performance Manage-
ment Goal complete.
FY16 - Theme 3 Results at a Glance